Research: US monthly SVoD spend drops 25%
April 5, 2023
Findings from analyst firm Parks Associates show a significant drop in US consumer spending for streaming video services. US Internet households report spending $69 (€63) per month on OTT services in Q3 2022, down from $90 in Q1 2021, although the market remains saturated with 87 per cent of US Internet households having at least one streaming service.
Parks Associates’ OTT Video Market Tracker: Insights into the Evolving US Streaming Landscape includes insights into the video streaming market and the latest consumer data on adoption, spending, and the ripple effects to widespread streaming usage. Forty-five per cent of US Internet households now have five or more OTT services, and their streaming activities influence spending on other services – 60 per cent of households that recently upgraded their broadband service report streaming as the reason for the upgrade.
“Consumers are trying new services – they’re hopping in and out based on the season for sports, fresh content offerings, and the deals and bundles offered,” advises Elizabeth Parks, President and CMO, Parks Associates. “Currently we see 32 million US Internet households hopping around with various services, and retention and churn will continue to challenge the industry.”